St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-08-01
NO. 213.

is the appearance of a number of out.
side operators, who, it is asserted, are
backed with plenty of coin. 1t is also
ascertained that there are large num-
ber of English firms who have been and
still are ShOrting the California wheat
market. 1t is the intention of the syn
dicate to secure their scalps as quickly;
as possible, and the threat has been
made that the price of wheat will be-
end is accomplished. The infusion of
this
BLOOD INTO THE DEAL
is an unexpected blow to the members
of the ring, who, while they may appear,
to the public in the light of succeSsfuB
manipulatOrs, are really in most un-
fortunate position. Their own ware
houses are filled to repletion with wheat,t
held at enormous figures, and which it
is impossible to dispose of unless at al
tremendous loss and their position is
such out of their desperation they are
forced to raise the market on them.
selves. Heavy capitalists of this citY
are engineering the deal. The name Oh
John ROSenfeld is mixed with that of
the Nevada bank as one of the factors
concerned. 1t is believed that one Lead
ing operator will be made Scapeg0at
of by the combination when the COLLAPSED
comes. He will be allowed to fail
and the others will keep in the
background. AS for those who
have been putting up more margin
on their contracts, the chances
are that every cent of it will be swept.
into the maw of the pool before the ull
innate collapse. The talk about MILL
ions at stake is all buncOmbe. While un-
doubtedly millions are involved in the
deal, the loss when the crash comes will
be nominal and far beneath the real
liabilities of the scheme. A noticeable
feature of the deal is the precaution
taken by responsible parties to conceal
their identity by pooling all their issues
in the hands of straw broker, William
DreSbach, who operates on the board.
He is simply man of straw, so far as
responsibility is concerned. This alb
normal condition of the wheat market
is affecting other branches of trade, and
the dealer is paying more for coal. iron,
etc. In consequence ships chartered in
England with coal for this port are
charging enormous freights on articlesl
they would gladly carry at trifflngi
sum, were they not compelled to face
the dangers of a lookup i'll wheat, ands
consequently low freights offered in
this port. Nearly all the flour mills in
the state have
SHUT DOWN
because of the high price of wheat,
which renders it impossible to make
flour and sell at profit in competitionj
with the imported article. This has
thrown thousands of people out of enl-
ployment. The price of flour has risen
from IS to $3.50 per barrel since the re-:
cent wheat deal began, and flour, which.
is being brought from Minneapolis, isl
af frnrp fn =
considerably below the price of the
local product. California's great exl
port trade in flour has fallen off to a
mere nothing. When the announces;
ment was made some time ago that thel
traffic arrangement existing between.
the Pacific Coast Steam Ship company
and the Canadian Pacific Railroad COM
pany was shortly. to terminate it was
generally believed by railroad people
that the efforts of the foreign line to
disturb California freight rates.
would shortly cease. The managers
of the Canadian Pacific, however, had
foreseen the possibility and had taken
measures to guard against their exptl-
sion from the Pacific coas ttrade. About
three months ago a Canadian Pacific.
agent went to Antwerp and purchased
there six large and handsome steamers.
the property of large shipping firm
which had recently become. ,insolyent.
Two of the steamers laden with a cargo
of fancy merchandise are now on the
way to this city by way of Cape Horn.
On their arrival the Canadian Pacific
will be practically independent of the
Pacific Coast and other steamship COM
panies, and will be able to quote what
ever rates it pleases to any point on the
lines, and will be in most favorable
position to California as well as Pacific
coast business.